It seems like it was yesterday that I was able to update everyone and tell you that the USDA Rural Housing program was back. It's gone again!!! We were notified today that they expect to run out of money again by today, Sept 30th. We think that it will be about 4-6 weeks before Congress approves more money. Until that happens, the Rural Housing Program is no longer an option. For those buying homes in rural areas – like Elko New Market, Zimmerman, Belle Plaine – it is a great option. Hopefully it won't be long before the program is available again.
FHA is changing the upfront mortgage insurance premium and the monthly premium next week. For those that are buying or refinancing your home, case numbers need to be ordered this week to be at the current premiums. As of Monday, October 4th, the upfront premium will be dropped to 1.0% of the mortgage amount and the monthly premium will increase to .90% of the mortgage amount. So a $200,000 mortgage will have a monthly premium of $150.00 instead of the lower $91.66 that you get today.
We still haven't heard a final date on the change in seller paid closing costs. From what I had heard last month, it may happen in October. FHA is looking at reducing the amount the seller can pay from 6% to 3%.
Rates are still fantastic for anyone looking to buy or refinance!!
Leslie Vanderwerf, Advisors Mortgage - Email – Website
